Brickwork Ratings (BWR) upgrades the rating of Tier I Subordinated Perpetual Bonds (Basel II)to BWR BB+/ Stable from BWR D of Yes Bank (YBL or the bank).

“The rating upgrades factors in improvement in capitalisation ratios of the bank, strong shareholder base and experienced board members. The bank has a strong shareholder base with State Bank of India holding 30% stake as on Sept.30, 2020 and the bank has an experienced board of directors with Prashant Kumar as the managing director and chief executive officer (MD & CEO),”stated Brickwork Ratings.

The rating is however constrained by the weak asset quality, impacting the profitability and moderate resource profile of the bank. The gross non-performing assets (NPAs) and net NPAs stood at 16.9% and 4.7% respectively as on Sept.30, 2020. The ability of the bank to control slippages on account of COVID-19 related stress is a key monitorable, it said.

Shares of the bank gained Rs 1.73, or 9.98%, to trade at  Rs 19.06.  The total volume of shares traded  was  99,504,156 at the BSE (12.36 p.m., Wednesday).